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Flashcards in Key terms Deck (55):
1

Chain of command

Route through which orders are passed down in the hierarchy

2

Delegation

Authority to pass down work from superior to subordinate.

3

Span of control

Number of people a person is directly responsible for in a business

4

Formal organisation

Internal structure of a business as shown by an organisation chart

5

Organisational chart

Diagram that shows the different job roles in a business and how they relate to each other.

6

Hierarchy

Order or levels of responsibility in an organisation from the lowest to the highest

7

Authority

Right to command and make decisions

8

Payroll officer

Someone who is responsible for the administration of workers' pay in an organisation

9

Accounts clerk

Someone who keeps records or accounts in an office

10

Subordinates

People in the hierarchy who work under the control of a more senior worker

11

Centralised

Type of organisation system where most decision are made at the top of the organisation and then passed down the chain of commands

12

Decentralised

Type of organisation system where decision making is pushed down the chain of command and away from the top

13

Limited liability

Shareholders are legally responsible for the debts of a company according to how many shares they own.

14

Memorandum of association

Document that describes what the company has been formed to do, gives details about the company, including: name, address, objectives, number of shares issued and amount of capital raised.

15

Private limited company

Private company limited by shares were the shareholder's properties are kept securily

16

Franchisee

The entrepreneur who wishes to open a new branch of a franchised chain( who pays the franchisor to do so)

17

Franchsior

The owner of a brand. E.g. McDonalds, the body shop

18

Public Limited Company ( PLC )

A limited company whose shares are freely sold and traded, with a minimum share capital of £50 000 and the letters PLC after its name

19

Stakeholder

Anyone with an interest in the company

20

Partnership

It is when a company is owned and controlled by 2 to 20 people.

21

Public Sector Organisation

Their aim is not to make a profit, it is to provide a service. They are run by the government. E.g. firemen, police

22

Entrepreneur

Person who takes risks and sets up businesses; individual who organices the other factors of production and risks their own money in a business venture

23

Sole trader

An individual that owns and controls a business and may or may not employ other people.

24

Unincorporated

Business where there is no legal difference between the owner and the business

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Incorporated

Business that has a separate legal identity from that of its owners. E.g. PLCs

26

Flotation

The process of a company 'going public'

27

Stock market

A market for shares in PLCs

28

Joint Venture

Where two or more companies share the cost responsibility and profits from a business venture

29

Ventures

New business activity that involves taking risks

30

Venture capitalists

Specialist investors ( individuals or companies ) who provide money for business purposes, often to new businesses

31

Privatisation

Transfer of public sector resources to the private sector business

32

Subsidise

Paying part of the costs ( often by the government in business)

33

Natural monopoly

Market where it is more efficient to have just one organisation meeting total market demand

34

Public corporations

Business organizations owned and controlled by the state/ government .

35

Infrastructure

Basic systems and structures that a country or organisation needs in order to work properly E.g. Basic power lines for new housing development

36

Primary sector

Production involving the extraction of raw materials from the earth

37

Secondary sector

Production involving the conversion of raw materials into finished and semi-finished goods.

38

Assembly plant

Factory where parts are put together to make a finished product

39

Tertiary sector

Production of services in the economy

40

Brownfield sites

Areas of land that were once use for urban development.

41

Monetary policy

Using changes in interest rates and the money supply to manage the economy

42

Repatriation of profit

Where a multinational returns its profits from an overseas venture to the country where it is based, typically from a developing country to a developed country

43

Currency reserves

Money in foreign currency held by a country and used to support its own currency and to pay for imports and foreign debts

44

Trade bloc

Group of countries situated in the same region that join together and enjoy trade free of barriers

45

Overtrading

Taking on more work than a business can afford to fund effectively.

46

Undercapitalised

Starting a business with insufficient capital

47

Job description

Document that shows clearly the tasks, duties and responsibilities expected of a worker for a particular job

48

Inventory

Stocks of goods. There are 3 types of inventory:
- raw materials inventory
- work-on-process inventory
- finished goods inventory

49

Communication barriers

Obstacles that prevent effective communication between a sender and a receiver

50

Application form

Standard document used to collect information from a job seeker

51

Fixed assets

Resources that are used repeatedly for a period of time by a business such as properties, tools, vehicles and machinery

52

Informal communication

Using non-approved channels when communicating

53

Capital employed

Amount of money invested in a business

54

Person specification

Personal profile of the type of person needed to do a particular job

55

Curriculum vitae

Document used by a job seeker that lists personal details, qualifications , work experience, referees and other details